October 24, 2017

Russian Aquaculture to purchase smolt production facility in Norway

Russian Aquaculture, the largest aquaculture company in Russia, announced the successful acquisition of a second smolt production facility in Norway, Olden Oppdrettsanlegg AS.

The facility utilises a flow-through system and can produce up to two million Atlantic salmon and trout smolt annually.

Russian Aquaculture expects to receive the first shipment of smolt from the facility in 2018. The production facility has operated since 1995 and has been one of the main suppliers of Russian Aquaculture for years.

The company views this acquisition as an important step towards building an efficient vertically integrated holding and achieving its strategic goal of producing up to 25-30 thousand tonnes of red fish by 2025.

Together with Villa Smolt, which Russian Aquaculture acquired earlier this year, the company now has its own smolt to cover a material part of its supply needs, significantly reducing operating costs and biological risks.

In addition, the acquisition shows that the company is implementing its strategy aimed at increasing operational efficiency and maintaining profitability in the long-term.

Russian Aquaculture plans to keep the highly professional personnel currently managing the facility and plans to develop the asset while strictly adhering to veterinary rules and continuing to act in a social responsible way.

The acquisition will also enable the company to gain significant experience in the smolt farming business, which may be further utilised in the construction of a smolt plant in Russia.

"In a relatively short period of time, we have made two important steps towards securing the stable supply with our own smolt. I am confident that this investment will strengthen our market position as well as decrease operating costs and biological risks," said Ilya Sosnov, CEO of Russian Aquaculture.

"We are very happy to have acquired this first-class asset, and welcome the opportunity to work together with Norwegian colleagues who are among our longest-standing partners."

- Russian Aquaculture